Donald Trump is renewing his push for sharply lower interest rates, putting his demands at odds with the Federal Reserve’s decision to raise borrowing costs to fight inflation.
In a Truth Social post, Trump wrote:
“Interest Rates in the United States should be 1%, or less”
He argued that America’s credit standing and investment growth justified cheaper borrowing, ending with a demand to lower rates “AND FAST!”
The Fed Is Moving the Other Way
The Fed raised its benchmark rate by 0.25 percentage points to 3.75%–4.00% on September 16, with all 12 voting members supporting the decision, according to its official statement.
Related: Fed Raises Rates for the First Time Since 2023 as Inflation Persists
Chair Kevin Warsh defended the move by warning that inflation had remained too high for too long. The decision highlights the widening gap between Trump’s preference for cheaper credit and the Fed’s effort to bring inflation back to 2%, as the Financial Times reported.
Related: Warsh Says Inflation Is “Too High” as Fed Raises Rates
Trump’s demand is a political position, not a change in policy. For borrowers, the Fed’s higher rate remains in place, and there is no announced path to the 1% level he wants.
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